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Speech on A lean startup strategy to overcome the entrepreneurial challenges in Bio-energy sector: in context of National Mission for a ‘Green India’. by Dr. P.PACHAURI Director (Projects & Planning) Noida institute of Engineering & Technology (NIET)
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Speech onA lean startup strategy to overcome the entrepreneurial challenges in Bio-energy sector: in context of National Mission for a ‘Green India’ by Dr. P.PACHAURI Director (Projects & Planning) Noida institute of Engineering & Technology (NIET) 19, Knowledge Park-II, Greater Noida-201306, UP, India Email: ppachauri@niet.co.in, profpachauri@gmail.com (M)+91 9910076602, 9911900314 In 5th World BioenergyCongress and Expo June 29-30, 2017 Madrid, Spain
The National Mission for a Green India (GIM) • The Mission aims at addressing climate change by enhancing carbon sinks in sustainably managed forests and other ecosystems; adaptation of vulnerable species/ecosystems to the changing climate; and adaptation of forest dependant local communities in the face of climatic variability. • The Mission acknowledges the influences that the forestry sector has on environmental amelioration though climate mitigation, food security, water security, biodiversity conservation and livelihood security of forest dependant communities.
The objectives of the GIM The objectives of the mission are three-fold: • Double the area to be taken up for afforestationin India in the next 10 years. The mission includes forests and non forest public lands as well as private lands. • Increase the Green House Gases (GHG) removal to 6.35% of India’s annual total GHG emissions by the year 2020. (it would be an increase of 1.5% in the absence of the Mission). • Enhance the resilience of ecosystems – enhance infiltration, groundwater recharge, stream and spring flows, biodiversity value, provisioning of services (fuel wood, fodder, timber, NTFPs, etc) to help local communities adapt to climatic variability.
Time frame and Cost of GIM • The implementation period of the GIM is 10 years, (from FY 2010-2011 to FY 2019-2020). • Total mission cost is estimated to be Rs 44,000 Crores for achieving following targets: • Governance through secure tenure and capacity enhancement • Strengthening local community institutions • Improving investment climate for planting and forest conservation • Improved monitoring at planning, input, outcome, and impact level • Making the Mission a people’s program
Sub Missions of GIM: Enhancing climatic resilience in moderately dense forests Eco - Restoration of open forests Restoration of scrub/grasslands Restoration of new mangroves Restoration of Wetlands Enhancing tree cover in Urban & Peri-Urban areas (including institutional lands) Agro forestry and social forestry (increasing biomass & creating carbon sink) Securing Corridors to help species adapt to climate impacts Improving fuel use efficiency and promoting alternative energy sources
Entrepreneurial avenues in Green Business • As an entrepreneur, it is very important to know that your green business can help to enhance capacities to cope with climate change risks. • The developing countries like India need them more than business as usual. • A green business can help to increase the Green House Gases (GHG) removal.
Why is India a great Business destination ?? • India is at crossroads where it now has to cater to the aspirations of a billion people. • Existing frameworks can prove to be inadequate and there is a great need to leverage a billion minds and become a global power. • Startups and entrepreneurship is the best way forward in becoming a knowledge superpower. • India is seeing a growth phase. People who are passionate to create great things, and companies that aspire to solve bigger problems are able to do much better than those who just look around for funding and money.
Business Opportunities in India • India was ranked as one of the ten largest economies in the world in 2010, and it was expected to continue to grow rapidly over the next two decades. • As per the Government of India reports, the Gross Domestic Product (GDP) of India has risen to $ 2.48 trillion by 2016. • The national and state level policy makers realize that if India has to sustain GDP growth rates the green businesses in particular have the potential to enable this growth. • The economic growth can go hand in hand with environment sustainability and green job creation for inclusive social development. • Per capita energy consumption in India is 1075 kWh (2015-16) and it is rising at the rate if 6% per annum.
The entrepreneurial atmosphere in India At the 11th edition of E-Summit at IIT-Bombay, NitiAayog CEO Amitabh Kant briefed that: • India has with a young population below 32 years that account for 72 percent of the population unlike the ageing population in the west. • The challenge for India is to grow at 8-9 percent for three decades or more so as to lift the poor out of the poverty line. • By 2022-23, India should have 100,000 startups at a valuation of Rs 75,000 billion. At the same time India will be confronted with challenges like plastic, sewage, water management, etc. • The other big challenge for the country is urbanisation. Around 600-700 billion people will migrate to urban areas for which the country will have to create regions that are 2.5 times the size of America. • Electrical vehicles, climate change are critical for India and need innovation.
Why Green Business ?? Because, • This presents an opportune time for entrepreneurs to get associated with green business, either by starting one or by greening an existing business. • As a part of a green business, you will have easy access to many direct and indirect benefits such as government schemes, subsidies, grants, start-up capital funding, tax benefits, and bank loans, among others. • The Ministry of Micro, Small and Medium Enterprise (MSME) which supports businesses in India, has several schemes that support entrepreneurs. • In the Indian Union Budget 2015, loans under MSME have now been shifted to priority lending.
Priority Sectors in Green Business • Reserve Bank of India (RBI) in its recently published notification on ‘Priority Sector Lending” has identified the following seven sectors as priority sectors: • Agriculture • Micro, Small and Medium Enterprises • Export Credit • Education • Housing • Social Infrastructure • Renewable Energy
The entrepreneurial challenges in India • Policiesof Government–The government’s role has so far been limited to giving out grants and loans, but without an effective, enabling environment, implementation is far off the target. • Business Culture– Entrepreneurship and startups are only a recent phenomenon in the country. • Mentoring– Doing a startup is perilous and often a lonely journey. For a startup, it is very important to have mentors who have been through a similar process of starting or have business experience. • Hiring– In an uncertain economy where one is not sure about demand, for a startup, it is particularly difficult to make correct estimates on the number of employees needed. For a startup, it is particularly difficult to attract and hire talent and skilled workers. • Funding – Capital and access to capital has been a perennial problem for startups.
Lean startup • Fast, Concise and Effective startup.. • The most capital-efficient way to run a business. . • Lean Startup principles answer to the question 'How can we learn more quickly what works, and discard what doesn't? • Lean is the never-ending process of eliminating waste: finding every activity that does not create value for the customer and eliminating it. • The two greatest wastes are overproduction (making things the customer doesn’t want) and inventory (making things that aren’t used immediately).
Lean startup Methodology • The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources. • A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste. • The lean startup methodology was first proposed in 2008 by Eric Ries. Ries shared that his first company, Catalyst Recruiting, failed because he and his colleagues did not understand the wants of their target customers, and because they focused too much time and energy on the initial product launch.
Lean startup Methodology Contd.. • The methodology aims to shorten product development cycles by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning. • In a lean startup, instead of being organized around traditional functional departments, we use a cross-functional problem team and solution team. • “We must learn what customers really want, not what they say they want or what we think they should want. We must discover whether we are on a path that will lead to growing a sustainable business.”
Components of Lean Startup Methodology Lean startup principles have been applied to specific competencies within typical startups and larger organizations: • Lean analytics • Lean brand management • Lean hardware • Lean events • Lean manufacturing • Lean marketing • Lean product management • Lean sales • Lean software development • Lean UX
Minimum Viable Product (MVP) • The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible. • Minimum viable product is an attempt to get startups to simplify, but it is not itself simple. How do you know which features are essential and which should go? There is no formula, it requires judgment. This leads to two questions: • By what standard is this hypothesis to be chosen? MVP proposes a clear standard: the hypothesis that seems likely to lead to the maximum amount of validated learning. • How do you train your judgment to get better over time? Again, the answer is derived from the hard-won wisdom of the scientific method: making specific, concrete predictions and then testing them via experiments that are supposed to match those predictions helps scientists train their intuition towards the truth.
Lean Canvas A problem well stated is a problem half-solved.” – Charles Kettering • The Lean Canvas is a version of the Business Model Canvas adapted by Ash Maurya specifically for startups. • Lean Canvas promises an actionable and entrepreneur-focused business plan. It focuses on problems, solutions, key metrics and competitive advantages. • The Lean Canvas focuses on addressing broad customer problems and solutions and delivering them to customer segments through a unique value proposition. • The Lean Canvas is the perfect format for brainstorming possible business models, prioritizing where to start, and tracking ongoing learning.
Unique Value Proposition As defined by Steve Blank “A single, clear compelling message that states why you are different and worth buying.” The UVP should clearly present ‘what’s in it for me?’ for early adopters. This is something I expect will change and be refined over time. UVP is a clear statement that describes the benefit of your offer, how you solve your customer's needs and what distinguishes you from the competition. Your unique value proposition should appear prominently on your landing page and in every marketing campaign.
How to begin.. • Test your business idea • Choosing the right business structure • Choose the right start-up name • Create a logo that properly represents your business • Apply for a Start Up Loan • Choose an accountant • Choose office space for your business • Business software when starting out • Red tape checklist: What your small business needs to know • 3 key selling techniques that could help your start-up
Registration of Start-up Option 1: An entity can register itself through Registrar of Firms using the existing processes and subsequently register itself on the Startup India portal and mobile app as a “Startup” to avail the benefits. Option 2: An entity can register itself through the Startup India portal and mobile app using a seamless process. • Log in to Startup India Portal • Choose your legal entity • Input your incorporation/registration number • Input your incorporation/registration date • Input PAN number (optional) • Input your address with postal code & state • Input authorized representative details • Input director(s)/partner(s) details • Choose and upload supporting documents and self-certification • Incorporation/registration certificate of company/LLP/Partnership • Registration to avail tax and IPR • Certify the official notification terms and conditions
Atal Innovation Mission (AIM) The Atal Innovation Mission (AIM) shall have two core functions: • Entrepreneurship promotion through Self-Employment and Talent Utilization (SETU), wherein innovators would be supported and mentored to become successful entrepreneur • Innovation promotion – to provide a platform where innovative ideas are generated through • Establishment of sector specific Incubators • Establishment of 500 Tinkering Labs • Pre-incubation training • Strengthening of incubation • Seed funding Innovation promotion:• Institution of Innovation Awards (3 per state/UT) and 3 National level awards• Providing support to State Innovation Councils • Launch of Grand Innovation Challenge Awards for finding ultra-low cost solutions
Incubator Setup To ensure professional management Government plan to create incubators across the country in public private partnership. • 35 new incubators in existing institutions. Funding support of 40% (subject to a maximum of INR 10 crore) shall be provided by Central Government for establishment of new incubators for which 40% funding by the respective State Government and 20% funding by the private sector has been committed. • 35 new private sector incubators. A grant of 50% (subject to a maximum of INR 10 crore) shall be provided by Central Government for incubators established by private sector in existing institutions. The funding for setting up of the incubators shall be provided by NITI Aayog as part of Atal Innovation Mission.
Research Parks • The Government plans to set up 7 new Research Parks in institutes indicated below with an initial investment of INR 100 crore each. • The Research Parks shall be modeled based on the Research Park setup at IIT Madras. • IIT Guwahati, • IIT Hyderabad, • IIT Kanpur, • IIT Kharagpur, • IISc Bangalore, • IIT Gandhinagar and • IIT Delhi.
Key points of the startup India initiative • Single window clearance, and creation of App • 10,000 Crore funds of funds • 80% reduction in patent registration fee • 90-day exit window • Exempted from capital gain tax • Tax exemption on profits for 3 years • Reduction in red tape • New compliance system (self-check) • IPR (Intellectual Property Rights) protection
Conclusion We can conclude that: • National Mission for a ‘Green India’ is a big business opportunity for budding entrepreneurs and a lean startup strategy can provide a better solution to overcome the entrepreneurial challenges in Bio-energy sector. • India is offering a Great opportunity as a business destination. • The Government of India is ready to support by all means.. Wishing a great success for National Mission for a ‘Green India’.
